Sat | Sep 18, 2021

720 eligible for NHT subsidy

Published:Saturday | May 1, 2010 | 12:00 AM

The National Housing Trust (NHT) estimates that its new
subsidy programme for low income contributors will cost the agency J$840
million this financial year.

But the subsidies will only be available to contributors if
the agency makes a surplus in the previous quarter, NHT said.

The housing agency said it posted an operating surplus of
about J$3 billion before tax and J$2 billion after tax at its financial year
ending March 2010. The numbers are unaudited.

The Trust is also projecting that about 720 contributors
will benefit from the housing subsidy in 2010/11.

Persons eligible under the programme include contributors in
the one per cent and three per cent interest rate bands or persons earning
between J$4,070 and J$10,000.99 per week.

Only persons, who have been contributing for a minimum of 10
years can apply. The selection will be done using a process similar to the
existing Priority Index Entitlement method used for NHT scheme selection.

Under the new initiative, applicants may be granted
subsidies of up to J$1.2 million. Persons can use the subsidy to build or
purchase a unit on the open market or in NHT Schemes.

However, the subsidy cannot be used to buy land lots.

The projected expenditure for the Subsidy Programme for each
financial year, is 40 per cent of pre-tax surplus.

Meanwhile, effective July 1, successful scheme applicants
will no longer be required to pay a deposit of five per cent of the purchase
price of units or lots for which they have been selected.

However, the applicant will still be required to pay all
closing costs legal and professional fees associated with the purchase of the
unit. Applicants would also have to finance the gap between the cost of the
property and the amount the applicant is eligible to borrow.